- Schlumberger (SLB +2.1%) and Subsea 7 (OTCPK:SUBCY +7.3%) say they have launched exclusive talks to form a 50-50 joint venture to deliver subsea installations and services for oilfields, sending Subsea shares higher on hopes the talks could be the first step toward a full takeover.
- The two companies have collaborated since 2015 for some of their work in designing, building and laying oil and gas production installations on the seabed.
- “We view the deal as highly positive for Subsea 7,” says Arctic Securities analyst Tord Aasen Augestad, adding that the joint venture “improves their competitive position and creates a unique platform to capture market share in a recovering subsea market.”